INTRODUCTION TO HIGHER EDUCATION CAPITAL FUNDING › highered › research › Documents › Legislativ… · introduction to higher education capital funding ben cannon, executive

INTRODUCTION TO HIGHER EDUCATION CAPITAL FUNDINGBEN CANNON, EXECUTIVE DIRECTOR, HECC

ANDREW ROGERS, DIRECTOR, HECC OFFICE OF UNIVERSITY BUDGET & FINANCE

PATRICK CRANE, DIRECTOR, HECC OFFICE OF COMMUNITY COLLEGES AND WORKFORCE DEVELOPMENT

XXU XXU XXUWOU

April 13, 2017Presented to: Joint Ways and Means Education Subcommittee

WOU LBCCChemeketa CC

2

PRESENTATION SCHEDULE

Day 1-2, March 27-28•Introduction to Higher Education Structure and Students,

Progress toward State Goals, Quick Funding History

Day 3-4, March 29-30•Affordability: Key Factors, State Financial Aid Programs + Intro

to Student Pathways

Day 5, April 3•Student Pathways and Transitions: Precollege, Inter-college,

Private Postsecondary, Workforce

Day 6, April 4 •Public Testimony

Days 7-8, April 5-6•State Support for Community Colleges

•Community College presentations


Days 10-11,

April 11-12

•State Support for Public Universities

•University presentations

Day 12, April 13 •Capital Construction, Other Missions of Universities


Day 14, April 18 •OHSU Budget and Public Testimony

Day 15, April 19•An Integrated postsecondary agency, HECC Operations,

Conclusion

Start dates for presentation topics are tentative

Andrew Rogers, Director, University Budget & Finance

CAPITAL CONSTRUCTION REQUEST: PUBLIC UNIVERSITIES

OSU

4

GOVERNOR’S RECOMMENDED BUDGET (GRB/CSL):

STATE SUPPORT FOR PUBLIC UNIVERSITY DEBT SERVICE

Activity Description 2015-17 LAB 2017-19 CSL 2017-19 GRB

Support DebtService on Previous University Capital Projects

Supports debt service on previously approved capital projects for the universities

$151.6M($119.7M GF, $31.9M LF

$193.6M

($161.7M GF,

$31.9M LF

$193.8M($161.9M GF,

$31.9M LF)

Change from 2015-17

+21.8% from LAB+0.1% from CSL

NOTE: This slide focuses primarily on General Fund (GF) and Lottery Fund (LF) dollars, not Other Funds. LAB: Legislatively Adopted

Budget, GRB: Governor’s Recommended Budget, CSL: Current Service Level

5

GOVERNOR’S RECOMMENDED BUDGET (GRB/CSL):

PUBLIC UNIVERSITIES: NEW CAPITAL FUNDING


Support University New

Capital Funding

Supports new generalobligation bond proceeds funding18 new capital

construction projects at all seven public universities. Thirteen of these projects are funded with Article XI-G and Article XI-Q bonds repaid by state General Fund.

$308.9M OF ($252.0M State Paid,$56.9 M University Paid)

N/A $349.8M OF Limitation ($269.6M State Paid, $80.3M Univ. Paid)

Change from 2015-17

N/A N/A N/A

SupportUniversity and Community College Campus Safety

Supports lottery bond

proceeds related to safety infrastructureInvestments at Oregon public colleges and universities recommended by the Oregon Campus Safety Workgroup.

N/A N/A $15.0M

Change from 2015-17

N/A N/A N/A



UNIVERSITY CAPITAL PORTFOLIO

Public University E&G Capital Portfolio, Fall 2016

Buildings GSF Notes

Total University E&G 597 15,702,789

Individual Institutions E&G GSF and Buildings

Institutions Buildings GSF % of Total E&G Space

EOU 20 606,898 3.9%

OIT 32 666,922 4.2%

OSU 265 5,848,180 37.2%

PSU 42 2,619,048 16.7%

SOU 52 1,024,655 6.5%

UO 145 4,099,221 26.1%

WOU 41 837,865 5.3%

Source: University Data and HECC Office of University Coordination 6

7

DISTRIBUTION OF EDUCATION AND GENERAL (E&G) GROSS SQUARE FEET BY INSTITUTION

37.2%

16.7%

26.1%

3.9%

4.2%

6.5%5.3%

Overall Gross Square Feet

(GSF) 15,702,789

OSU

PSU

UO

EOU

OIT

SOU

WOU

Source: University Data and HECC University Coordination Office

80.0%

20.0%

Big Institutions vs. Technical

Regional Universities (TRUs)

Big Institutions TRU InstitutionsBig Institutions-12,556,449 GSF

TRU Institutions-3,136,340 GSF

UNIVERSITY CAPITAL PROCESS

GRB finalized list: Dec.

Assist in GRB Considerations: Nov.

HECC Scoring and ARB development: May.-Nov.

University capital submission: May

University President’s develop Tier I, II and III capital list: April

HECC Capital Principles and Scoring Rubric development: Feb.-May

8

HECC UNIVERSITY CAPITAL PRINCIPLES

All state backed debt will support the Commission’s Strategic Plan through investments in:

• Classroom, Laboratory, Research or Student Services space

Institutions must plan for ongoing operational and

maintenance needs of current and future capital

portfolio

State backed debt will serve either to

• Extend the useful life of current capital assets

• Expand capacity to meet needs of students

• Develop or extend key competitive advantages

Projects which generate operational cost savings will

be prioritized

Source: HECC Principles to Guide the Prioritization of State General Obligation and State Backed Debt Financed

Projects9

http://www.oregon.gov/HigherEd/Documents/HECC/FA/2016/05 May-24-16/9.0b.PublicUniversitySupportFundInvestments_CapitalPolicyStatementandRubric.pdf

HECC UNIVERSITY CAPITAL PRINCIPLES, CONTINUED

The HECC, in conjunction with institutions will

evaluate key capacity constraints across the

portfolio of institutions to prioritize investment

Public-private and multi-party collaborations will be

encouraged

Leveraging of non-state resources, including private and university funds will be

encouraged

Deferred maintenance and capital debt

prioritization will focus on aligning economic

incentives of institutions and state capital

investment

Source: HECC Principles to Guide the Prioritization of State General Obligation and State Backed Debt Financed

Projects 10


HECC 2017-19 CAPITAL RUBRIC

•Minimum thresholdProject must meet Campus

Master Plan, OEIB and HECC Strategic Plans

•Ease capacity constraints within portfolio

• 10 pts

•Support student completion

•10 pts

•Support research & economic development

•5 pts

•Collaboration

•5 pts

HECC priorities

• 10 ptsDeferred maintenance and

cost savings

• 10 ptsLife, safety and code

compliance

• 20 ptsCampus priority

•5 ptsEnhance current effort

•15 ptsLeveraging campus and

external support

•10 ptsStrategic priority

Source: HECC 2015-17 University Capital Project Prioritization Scoring Rubric 11


BRIEF OVERVIEW OF BOND TYPES

XI-F(1) Bonds-Backed by university revenues. Can be utilized for non E&G projects.

• University pays full debt service.

XI-G Bonds-University provides dollar for dollar match to state bonding commitment. Restricted to higher education facilities (University, OHSU and CC)

• State pays debt service.

XI-Q Bonds. Fully state paid. Restricted to state owned buildings only.

• State pays full debt service.

12

13

PUBLIC UNIVERSITY CAPITAL REQUEST (GRB)

Public University Prioritized Capital Construction Request, 2017-19 Biennium

GRB (in thousands $) (table one)

Institution Project

State-Paid Debt Campus Paid Debt & Resources

TotalXI-G XI-Q

State-Paid

Total

State Paid

Cumulative

Total XI-F Gifts/Other

Campus

Total

All Capital Improvement & Repair $ 45,650 $ 45,650 $ 45,650 $ 45,650

PSU4th & Montgomery for Graduate

School of Education$ 40,500 $ 40,500 $ 86,150 $ 6,000 $ 52,000 $ 58,000 $ 98,500

OSU Gilkey Hall Renovation $ 2,000 $ 1,000 $ 3,000 $ 89,150 $ 2,000 $ 2,000 $ 5,000

OSUOregon Quality Foods &

Beverage Center$ 9,000 $ 0 $ 9,000 $ 98,150 $ 9,000 $ 9,000 $ 18,000

EOUInformation Technology

Equipment Facility$ 1,200 $ 1,200 $ 99,350 $ 1,200

OSU Cordley Hall Renovation Phase I $ 15,000 $ 15,000 $ 114,350 $ 15,000

14



GRB (in thousands $) (table two)

Institution Project

State-Paid DebtCampus Paid Debt &

Resources

TotalXI-G XI-QState-Paid

Total

State Paid Cumulative

Total XI-FGifts/Other

Campus Total

OIT

Center For Excellence In Engineering And Technology/Renovation Of Cornett Hall

$ 4,000 $ 34,000 $ 38,000 $ 152,350 $ 4,000 $ 4,000 $ 42,000

UOClassroom and Faculty Office Building

$ 30,000 $ 14,000 $ 44,000 $ 196,350 $ 30,000 $ 30,000 $ 74,000

SOU Central Hall Modernization $ 6,000 $ 6,000 $ 202,350 $ 6,000

WOUOregon Military Academy –Phase 2 Renovation

$ 500 $ 7,200 $ 7,700 $ 210,050 $ 500 $ 500 $ 8,200

OSUCCascades Expansion- a. Site Reclamation

$ 9,000 $ 9,000 $ 219,050 $ 9,000

OSUCCascades Expansion- b. Campus Infrastructure

$ 11,000 $ 11,000 $ 230,050 $ 11,000

15



GRB (in thousands $) (table three)

Institution Project

State-Paid Debt

Campus Paid Debt &

Resources

TotalXI-G XI-Q

State-Paid

Total

State Paid

Cumulative

Total XI-F

Gifts/

Other

Campus

Total

UOKnight Campus for

Accelerating Scientific Impact$ 34,000 $ 0 $ 34,000 $ 264,050 $ 100,000 $ 100,000 $ 134,000

EOULoso Hall Renovation, Phase

One$ 5,500 $ 5,500 $ 269,550 $ 5,500

EOUTrack and Field Facilities

Restoration Project$ 269,550 $ 750 $ 750 $ 1,500 $ 1,500

PSUUniversity Center Building Land

Purchase$ 269,550 $ 15,000 $ 2,000 $ 17,000 $ 17,000

PSU 12th and Market Resident Hall $ 269,550 $ 53,500 $ 10,000 $ 63,500 $ 63,500

OIT Student Recreation Center $ 269,550 $ 5,000 $ 5,000 $ 5,000

$ 120,000 $ 149,550 $ 269,550 $ 269,550 $ 80,250 $ 210,250 $ 290,500 $ 560,050

SYSTEMWIDE - CAPITAL REPAIR AND RENEWAL

Provides an

omnibus capital funding

category to

address

•Current capital improvements

•Code compliance

•ADA and safety related projects

16

CAPITAL CONSTRUCTION FUNDING

$114.9

$233.5 $221.9

$112.5

$246.4 $251.9 $269.5

$295.4

$327.8

$462.4

$231.5

$383.8

$147.9

$211.8

$410.3

$561.3

$684.3

$344.0

$630.2

$399.8

$481.3

$0

$100

$200

$300

$400

$500

$600

$700

$800

2005-07 2007-09 2009-11 2011-13 2013-15 2015-17 2017-19 GRB

Bie

nn

ial C

ap

ita

l B

ud

ge

t (m

illio

ns)

General Fund and State Backed Debt (Public Universities)

Total State Capital Budget

Campus /Non-State Funded Capital Budget

Source: HECC Office of University Coordination 17

STATE FUNDED DEBT SERVICE HISTORY

$33.1

$52.7

$82.1

$101.2

$114.7

$151.6

$193.8

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

2005-07 2007-09 2009-11 2011-13 2013-15 2015-17 2017-19 GRB

Sta

te F

un

de

d D

eb

t Se

rvic

e (

in M

illio

ns)

Biennia

Total State Funded Debt Service (GF+LF)

Source: OUS Budget Summaries 2005-2006, through 2014-15, HECC BRS 2016-17, and Governor's Recommended Budget (2017-19). 18

Patrick Crane, Director, Community Colleges and Workforce Development

CAPITAL CONSTRUCTION REQUEST: PUBLIC COMMUNITY COLLEGES

XXULBCC

20

GOVERNOR’S RECOMMENDED BUDGET (GRB):

STATE SUPPORT FOR PUBLIC COMMUNITY COLLEGE DEBT SERVICE

Activity Description2015-17

LAB2017-19 CSL 2017-19 GRB

Support Debt

Service on Previous

Community College

Capital Projects

Supports debt service on

previously approved capital

infrastructure projects for the

community colleges

$35.1M($24.6MGF, $10.5M LF

$43.8 M($32.1M GF,$11.7M LF)

$43.8M($32.1M GF, $11.7M LF)

Change from

2015-17+19.9%



21


PUBLIC COMMUNITY COLLEGES: NEW CAPITAL INFRASTRUCTURE FUNDING


SupportCommunityCollege Capital Infrastructure

Funding

Supports bond proceeds

funding eleven campus

infrastructure projects at

community colleges,

through Article XI-G bond

program.

N/A N/A $75.2M OF Limitation

Change from 2015-17

N/A

Support Universityand Community College Campus Safety

Supports lottery bond

proceeds related to safety

infrastructure

Investments at Oregon

public colleges and

universities recommended

by the Oregon Campus

Safety Workgroup.


Change from 2015-17

N/A N/A N/A



COMMUNITY COLLEGE CAPITAL RULES

Community college capital construction projects are funded by XI-G bonds or

lottery funds.

Colleges may not have more than one project

approved for XI-G bond funding that are awaiting

match funds.

For biennia beginning on or after July 1, 2015, the aggregate amount

authorized for the issuance of XI-G bonds for projects at

a single college may not exceed $8 million.

22

COMMUNITY COLLEGE CAPITAL PROCESS

HECC reviews final staff recommendations for Tier I and Tier II projects: May

Oregon Presidents Council finalizes recommendations for HECC staff: April

HECC staff present overview to or process and proposals to Funding and Achievement subcommittee: April

Capital Construction Workgroup conducts blind review and ranking, makes recommendations to HECC staff: April

Due Diligence Reports for Tier I and Tier II projects due to HECC: March

Due Diligence Report templates sent to colleges: Feb

23

CC CAPITAL CONSTRUCTION PROJECTS

GRB Community College Capital Construction Projects for 2017-19 Biennium

College Project XI-G Bonds Requested Total Project Cost

Umpqua Community CollegeNew industrial technology building $ 8,000,000.00 $ 20,110,414.00

Linn Benton Community College

Student affairs and campus safety space renovation $ 7,500,000.00 $ 15,062,670.00

Chemeketa Community CollegeNew agricultural complex $ 6,000,000.00 $ 17,060,313.00

Portland Community College Health Training Building Renovation $ 8,000,000.00 $ 22,500,000.00

Lane Community College New health care village $ 8,000,000.00 $ 16,200,000.00

Southwestern Community CollegeDellwood Hall remodel and expansion $ 2,749,997.00 $ 5,499,995.00

Clackamas Community CollegeDeJardin Building addition $ 8,000,000.00 $ 24,700,000.00

Mt Hood Community CollegeNew Maywood Park Center $ 8,000,000.00 $ 23,000,000.00

Blue Mountain Community CollegeNew animal science facility complex $ 5,000,000.00 $ 10,000,000.00

Oregon Coast Community CollegeNew workforce and academic building $ 8,000,000.00 $ 16,000,000.00

Rogue Community College Elk Building science building renovations $ 6,000,000.00 $ 12,000,000.00

24

COMMUNITY COLLEGE DEBT SERVICE HISTORY

$2.3$3.5

$8.0

$15.7$16.6

$24.6

$32.1

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

2005-07 2007-09 2009-11 2011-13 2013-15 2015-17 2017-19

GRB

Community College GF Funded Debt Service

(In Millions)

Data Source: HECC Office of Community Colleges and Workforce Development (CCWD) 25

Ben Cannon, Executive Director, HECC

CAMPUS PUBLIC SAFETY INVESTMENT

XXUChemeketa CC

27


NEW CAPITAL INFRASTRUCTURE FUNDING: CAMPUS SAFETY


SupportUniversity and

Community College Campus Safety

Supports lottery bond proceeds related to safety infrastructure

Investments at Oregon public colleges and universities recommended by the Oregon Campus Safety Workgroup.


Change from 2015-17

N/A N/A N/A



CAMPUS SAFETY WORK GROUP

Convened by Governor Brown in the wake of the 2015 Umpqua Community College tragedy

• Membership from all sectors of higher education as well as law enforcement

CHARGE:

• Ensure best practices and protocols are implemented across all higher education institutions to maintain public safety, and prevent, prepare for, and effectively manage future crisis response efforts; and

• Identify resource needs and potential state policy to enable a coordinated strategy across the higher education system for public and private institutions.

Download the full report at: https://gis.uoregon.edu/campussafety/

28

CAMPUS SAFETY WORK GROUP: INFRASTRUCTURE IS ONE COMPONENT OF BROAD STATEWIDE SAFETY RECOMMENDATIONS

REC

OM

EN

DA

TIO

N

AR

EA

S:

HIGHER EDUCATION SAFETY AND RESILIENCE COUNCIL

RESPONSE, CONTINUITY, AND RECOVERY

PUBLIC SAFETY AND LAW ENFORCEMENT

PHYSICAL SECURITY AND INFRASTRUCTURE

Develop campus security standards

Develop a physical security grant program to assist in

funding critical public safety infrastructure

Review existing purchasing cooperatives and/or develop

new options to leverage statewide purchasing power

Identify promising practices for budgeting, maintenance, and

replacement

BEHAVIORAL THREAT ASSESSMENT AND PREVENTION

29

30

PHYSICAL SECURITY AND INFRASTRUCTURE:

All post-secondary education institutions should have campus security standards that take into account the campus’s size, complexity, and hours of operation and incorporate crime prevention through environmental design principles. These standards should be integrated into campus planning efforts, capital projects, and major remodels.

Develop a physical security grant program to assist post-secondary institutions in funding critical public safety infrastructure including access control, cameras, alarms, data storage for video, mass notification, and lighting in existing buildings and campus infrastructure.

Review existing purchasing cooperatives and/or develop new options to leverage statewide purchasing power for physical security infrastructure including, but not limited to: access control systems, cameras, alarms, data storage solutions, lighting, etc.

Identify promising practices for budgeting, maintenance, and replacement of security systems at post-secondary intuitions.

DIVERSE MISSIONS OF PUBLIC UNIVERSITIES: PUBLIC SERVICES, STATEWIDE PROGRAMSANDREW ROGERS, DIRECTOR, UNIVERSITY BUDGET & FINANCE

XXU OSUOregon TechOSU OSUUO WOUOSU

DatePresented to: Joint Ways and Means Education Subcommittee

UO

PUBLIC UNIVERSITY STATE PROGRAMS

XXU

PSU

33


PUBLIC UNIVERSITIES: STATE PROGRAMS

Activity Description2015-17

LAB2017-19 CSL 2017-19 GRB

Preserve Public University State Programs

Preserves funding at 2015-

17 level for state programs

including as engineering

and technology

investments to the

universities, Dispute

Resolution Center, Oregon

Solutions, Signature

Research Centers, and

others.

$39.1M GF

$39.5M GF $39.1M GF($25.XM engineering

and technology

investments to

universities)

Change from

2015-17

0% from LAB

-1.1% from CSL



STATE PROGRAMS FUNDING REQUESTPublic University State Programs

University Program Funding

All Engineering Technology Sustaining Funds $25.2M

PSU & UO Dispute Resolution Center $2.6M

PSU Oregon Solutions $2.3M

OSU, PSU & UO Signature Research Centers $1.1M

UO Labor Education Research Center $699K

PSU Population Research Center $449K

OSU Institute of Natural Resources $411K

UO Clinical Legal Education $359K

OSU Oregon Climate Change Research

Institute

$322K

OSU Oceangoing Research Vessel $639K

OSU Fermentation Science $1.3M

OSU & UO Advanced Wood Products Center $3.5M

PSU Profiling Study (Temporary) $258K

Total $39.1M

34

STATE PROGRAMS

Programs operated largely by the three research universities which focus on economic development, industry and public service needs of Oregon

Legislatively appropriated line items, support and extend key capacities of research universities for the betterment of the state

Programs range from mediation and conflict resolution training to demographic forecasting and maritime research

35

STATEWIDE PUBLIC SERVICE PROGRAMS

XXU

OSU

37


PUBLIC UNIVERSITIES: STATEWIDE PROGRAMS

Activity Description 2015-17 LAB2017-19

CSL2017-19 GRB

Support the Agricultural Experiment Station

Preserves funding at 2015-17 level for

the Agricultural Experiment Station.$63.1M GF $65.8M

GF$63.1M GF

Change from 2015-17

0% from LAB-4.03% from CSL

Support the Forest Research Laboratory


the Forest Research Laboratory. $9.8M GF $10.2M

GF$9.8M GF

Change from 2015-17

0% from LAB-4.0% from CSL

Support the OSU Extension Service


OSU Extension Service, and adds

Lottery Funds to implement voter-

approved Measure 99 (2016) that

establishes an Outdoor Schools

Program.

$45.6M GF$0 LF

$47.5M GF

$45.6M GF$44M LF

Change from 2015-17

0% from LAB GF-4.0% from CSL GF



SWPS HISTORICAL FUNDING

$50.2$54.7

$58.2$53.5 $51.8

$55.4

$63.1 $63.1

$35.1$39.4

$42.1$39.1 $37.5 $39.9

$45.6

$89.6

$4.9 $5.5 $6.5 $5.8 $5.7 $6.1$9.8 $9.8

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

2003-05 2005-07 2007-09 2009-11 2011-13 2013-15 2015-17 2017-19

GRB*

Statewide Public Service Funding (2003-05 to 2017-19) in

Millions

Agricultural Extension Station Extension Service Forest Research Lab

*=Includes $44 million in lottery funds for Measure 99 Outdoor School Program.

Source: HECC Office of University Coordination 38

MEASURE 99: OUTDOOR SCHOOL PROGRAM

In the November 2016 election, voters approved ballot measure 99, which dedicates lottery funds ($44M in 2017-19) to Oregon State University’s Extension Service in order to fund an outdoor school program. The goal of this measure was to ensure that every sixth grade Oregonian will get an opportunity to attend a week-long outdoor school program.

OSU’s Extension Service will focus on:

• Developing and administering statewide standards related to Outdoor School programs.

• Issuing grants to school districts seeking to create and expand Outdoor School programs.

39

Engaging and Serving Oregonians and Their CommunitiesWays and Means Subcommittee on Education

April 13, 2017

40

State Appropriations to Public Universities

Yesterday… Today's topics…

Sports Lottery→ Grants to Student Athletes

→ Graduate Scholarships

Public University State ProgramsCurrrently 13 Research and Public Service Programs across the

universities with request to include the Oregon Renewable Energy

Center (OREC) at Oregon Tech

Statewide Public Services at Oregon State University→ Agricultural Experiment Station

→ Extension Service

→ Forest Research Laboratory

Public University

Support Fund

→ Outcomes (Degrees)

→ Activities (Enrollment)

→ Mission Differentiation:

-Regional Support

-Research

-Public Service

41

42

Sports Lottery = Equity Scholarships

43

Background

• HB 3262 (1989) Sports betting established at the Oregon Lottery. Funding supported intercollegiate athletics.

• HB 3466 (2005) eliminated sports betting. Replaced with guarantee of 1% of lottery money to public institutions for athletics.

• The public institutions received the guaranteed one percent for only one biennium. In subsequent biennia, total Sports Lottery has been capped. More recently, two individual institutions – OSU and UO – have been capped at $1M each, with the remaining funding allocated among the other five institutions.

88% of funding for intercollegiate athletics ($7.2M for 15-17)

12% for graduate student academic scholarships ($1M for 15-17)

44

Increasing Access and Affordability

• Over 75% of Sports Lottery Funding supports scholarships. Giving access to those who might not otherwise be able to enroll at a university.

• Sports Lottery supports the universities Title IX requirements to equitably fund women’s athletics programs. De-funding Sports Lottery will directly affect female athletes as well as overall operations of intercollegiate sports.

45

Restore the 1% - Approximately $12.5M• Being engaged in intercollegiate athletics while pursuing a degree has a

positive effect on student performance.

• Data show that the average student-athlete has better retention rates, GPAs and graduation rates than the overall student population.

46

Public University State Programs: Service to Oregonians

Distinct research and public service programs dealing with economic development, natural resources, and other statewide priorities

47

Public University State Programs

Engineering Sustaining Funds TallWood Design Institute (OSU & UO)

Dispute Resolution (UO & PSU)PSU Oregon Solutions

OSU Fermentation ScienceSignature Research (OSU, PSU, UO)

UO Labor Education Research Center

OSU Marine Research VesselPSU Population Research Center

OSU Institute for Natural Resources UO Domestic Violence Legal Clinic

OSU Climate Change Research InstitutePSU Profiling

OT Oregon Renewable Energy Center

Details on all programs in supplemental materials 48

$45.2

$38.6

$34.6

$39.2 $39.1 $40.9

$39.1 $41.9

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

$50.0

2007-09 2009-11 2011-13 2013-15 2015-17 HECC ARB GRB UNIV

State Programs Funding(in millions)

Legislatively Approved Budgets

2017-19 Requests

49

Highlighting two state program investments:

TallWood Design Institute (originally funded as Advanced Wood Products)• Geoff Huntington, Oregon State University• Judith Sheine, University of Oregon

Oregon Renewable Energy Center (OREC)• Josh Bratt, Power Oregon• John Dumbauld, Oregon Tech alumnus, eWind Solutions• Christian Diaz, Oregon Tech student

Public University State Programs

50

National Center for Advanced Wood Products Manufacturing

and Design

is now

TallWood Design Institute

52

• School of Architecture and Allied Arts, University of Oregon

• College of Forestry, Oregon State University

• College of Engineering, Oregon State University

TallWood Design Institute

53

How?

• Grow the mass timber manufacturing base

in Oregon

• Eliminate barriers and stimulate demand for

buildings utilizing mass timber products and

building systems

TallWood Design Institute Vision

The Institute seeks to:• Increase the ability of Oregon’s manufactured

wood products industries to compete in emerging markets for the high value wood products that are perfectly suited to the timber we grow and the stewardship ethic of our State.

• Support Oregon’s growing reputation as a center of expertise for sustainable building design.

54

What we do

• Industry-focused applied research

•Product development and testing

•Training and education

Applied Research $1.9 M in Projects Underway in 2015/2017 Budget Biennium

• Fire Performance of CLT Wall and Floor Assemblies Made in Oregon

• Behavior of CLT Connections with Self-tapping Screws

• CLT Fastener Solutions for Tall Wood Buildings

• Composite Concrete/CLT Floor Systems for Tall Buildings

• Seismic Performance of Cross-Laminated Timber and Cross-Laminated Timber-Concrete

Composite Floor Diaphragms

• Design of the Timber Pile Ground Improvement for Liquefaction Mitigation

• Post-Occupancy Performance Monitoring of Mass Timber Buildings

• Peavy Hall as a Living Lab

• Net-Zero Tall Wood Buildings

• Life Cycle Analysis of Mass Timber Buildings

• Tall Wood Buildings and Indoor Air Quality

• Launching an Annual Survey -- Taking the Pulse of the Global CLT Industry

56

Product Development & Testing

• Partnering with manufacturers to prototype, test and refine new mass timber products• DR Johnson CLT Panels

• Freres Lumber MPP Panels

• Modern Building Systems

• Providing peer review and testing services for new mass timber projects• Framework Project

• Glenwood Project

• City of Eugene Planning Division

Nearly $1 M available for testing of building components and code development

57

• Collate and synthesize research findings for code officials, designers and other relevant audiences

• Joint courses involving UO and OSU students

• Certificate program in mass timber manufacturing and construction for students and existing workforce

Education & Training

Programs that cross disciplines, prepare tomorrow’s workforce, and train wood products professionals and regulators

58

• Affordable Housing and Wood Building Systems Round Table

• OSU/HP partnership examining 3-D printing applications with wood

• UO design of Glenwood Project parking structure

• UO design of modular wood classroom

• OBOA partnership to compile testing data for Oregon code officials

Education & Training OutreachRecent Initiatives

59

KAITO [box-kite] Tom Adamson | Ryan Kiesler | Tom Moss Judith Sheine, Mark Donofrio, Faculty Advisors

60

Oregon Forest Science Complex

61

TallWood Design InstituteHelping Oregon Lead the Forest to Frame Movement

• $3,579,157 Governor’s 2017/2019 Recommended

Budget

• $3,000,000 Anticipated match from federal and other funds

• $1,000,000 University program commitments

• $7,500,000 Industry donations forAdvanced WoodProducts Laboratory Construction

62

Oregon Renewable Energy Center

Josh Bratt, Power OregonJohn Dumbauld, Oregon Tech Alumnus, eWind Solutions

Christian Diaz, Oregon Tech Graduate Student

64

Oregon Renewable Energy Center (OREC)1. Energy Generation

• Geothermal Power Plants =• Solar Arrays =

2. Talent Development• Departments of Electrical Engineering and Renewable Energy,

Mechanical & Manufacturing, Software and Embedded Systems

3. Applied Research and Technical Assistance for companies and communities • Geo-Heat Center – Technical assistance, international resources and advice on

the use of geothermal energy• Next steps in innovation and commercialization for companies: Prototypes,

Testing, Manufacturability

65

OREC Accomplishments• Klamath Falls Campus powered by

4 of Geothermal and Solar Energy, creating learning labs for students, faculty and partners.

• Produced graduates for the energy industry: renewable energy, manufacturing, mechanical, softwareand embedded systems engineering: over 665 graduates since 2006.

• Conducted technical assistance and applied research for 22 companies.

66

Industry Partner Project: PGE Energy Storage

• Independent characterization of novel battery for utility-scaleenergy storage

• Exposure to novel/cutting- edge technology

• Networking and contacts within industry

• Training in directly applicable industry skills

67

E-Wind Solutions

• E-Wind Solutions: Dr. Don Lee: with two student teams

• eWind Tether Team: Tether System design and fabrication: John Dumbauld, Jacob Ferguson, Bradley Wirth, Jared Lathone, Joshua Erler

• eWind Generation Team: Electricity Generation with generator fabrication: Henry Rueda, Joseph Brannen, Amanda Cruz, Ryan Grant

68

OREC Needs• Valuable state asset, authorized in statute

in 2001, needs to be included in University State Programs budget

• HECC Agency Recommended Budget includes $985K per biennium for OREC operations and faculty time for applied research

• Oregon Tech will complement state funds with faculty teaching time, lab investments, grants and grant administration

• Energy solutions with geothermal and other energy sources and systems= Less carbon

• Talent development = Graduates ready to work

• Economic development with assistance for small and medium-sized companies = Jobs

OREC Benefits

69

Oregon Public Universities: Economic Impact and Research

70

Statewide Economic Impact

71

Universities are a smart investment Develop talent for businesses

Conduct research (ONAMI, OTRADI, Oregon BEST, Federal Grants, Private Grants)

Increase employment in communities (Employees and New Businesses/Startups)

Develop and contribute to community (Volunteer Hours and Community Service Programs)

Introduce new technologies (Patents, Inventions, Technology Transfer)

Create new business opportunities and support new businesses (Technology Transfer, Small Business Development Centers, Business Accelerators)

Attract talent from around the world72

University ResearchFY2016 Externally Funded Research Awards and Expenditures

Start-ups/Spin-offs generated by the Universities from external research dollars in the last 10 years = 63

Awards Expenditures

Federal $379,071,362 $338,033,984

State of Oregon 96,922,720 66,596,343

Commercial/Industry 32,032,654 11,335,030

Non-Profit 25,560,786 23,861,809

Other States/Foreign & Local Govt 5,057,461 5,319,933

Other 5,319,236 4,409,831

Total $543,964,219 $449,556,930

73

74

75

Student Experience -- Bret LorimoreConvolutional Neural Networks for Video Analysis: Segmenting NFL game films by play & camera angle

• Google Internship

Graphics Processing Unit (GPU) Architecture:Accelerating performance of deep neural networks

• Grew out of course project

• Valuable mentoring relationship with professor

• Exposure to academic research process

• Strong recommendation for post-graduation job hunt76

Statewide Public Service ProgramsExtension Service Scott Reed, Director

Agricultural Experiment Station Dan Arp, Director

Forest Research Laboratory Thomas Maness, Director

OSU is Oregon’s Land-Grant University 1862 Morrill Act

SWPS are line items in Oregon’s budget, matched by federal and external funds

OSU Extension Service 1914 Smith-Lever Act

Building vitality in communities across Oregon

More than $10 M from funding partnerships with Oregon counties

Agricultural Experiment Station 1887 Hatch Act

Focusing the power of science on Oregon’s critical issues

More than $58.7 M in external funding leveraged by state support

Forest Research Laboratory 1941 ORS 526.225

Conducting research and analysis of forest resource issues important to Oregon

More than $18.8 M in external funding leveraged by state support

78

OSU’s Statewide Public Service ProgramsSolving problems and creating economic opportunities across the state

79

State funding for SWPS leverages external funding for a ten-fold return in economic impacts

x =$$$$$

$$$$$$State funding Federal grants,

contracts, capacity funds, and private

donations

Ten-fold ROI

80

Extension programs build community capacity in urban and rural Oregon

Faculty and staff Trained volunteers13,000

Engaged learner experiences

2.3 million

+ =

81

2015-17 Investments in the Statewides’ BudgetNew positions and expanded initiatives build vitality across the state

Urban communities

• Healthy living and nutrition education • Small-scale farming and community food systems • Research and development in fermentation sciences

Willamette Valley

• Honey-bee and pollinator health • Integrated pest management and slug control • Specialty seed production and timber harvest management

Coastal communities

• Managing forest lands in marbled murrelet habitat• Seafood safety and near-shore fishery management• Community economic development

Eastern Oregon

• Rangeland ecology to support sage-grouse conservation• Juniper harvest and manufacturing• Water and nutrient management in rotation cropping

Throughout Oregon

• Increased opportunities for college and career readiness• Experiential learning in real-world settings

82

Budget Proposals and Impacts

StatewidePublic Service

2015-17 Legislatively

Approved

2017-19OSU Trustee

Request

2017-19 Governor

RecommendedShortfall

Agricultural Experiment Station

$63.1 M $68.1 M $63.1 M $5.0 M

OSU Extension Service

$45.6 M $49.2 M $45.6 M $3.6 M

Forest Research Laboratory

$9.8 M $10.5 M $9.8 M $.8 M

Total $118.5 M $127.9 M $118.5 M $9.4 M

SB 805 supports the Statewides’ continuing service level by replacing the $9.4 M shortfall• Unanimously approved by Senate Environment and

Natural Resources Subcommittee• Referred to Ways and Means Committee

83

Sustainable management of working landscapes

Water quality and quantity

Value-added manufacturing and economic vitality

Public health, food safety and security

Educating the workforce of tomorrow

OSU’s Statewide Public Service Programsfocus on Oregon’s critical issues

84

• OSU’s Honey Bee Lab examines thousands of bees from commercial hives to check for parasites, disease, and malnutrition.

• This work saves Oregon's beekeepers about $1.4 million a year in reduced medications and $3 million in reduced bee mortality.

• Key partners: Oregon Beekeepers Association, Oregon Dept. of Agriculture

OSU keeps honey bees healthyOne-third of our food is dependent on honey bee pollination

85

• AES research and Extension are helping landowners develop ranch-scale conservation plans to improve rangeland for both grazing and wildlife habitat.

• Key partners: Bureau of Land Management, Oregon Dept. of Fish and Wildlife,U.S. Fish and Wildlife Service

OSU helps save sage-grouseWhat’s good for the bird is also good for the herd

86

• Statewide dollars support a host of research initiatives important to managing Oregon’s forests.• Capture, release, and tracking murrelets from the ocean to their nests in forests

is the key to determining how to actively manage coastal forests while protecting habitat.

Forest Research Laboratory InitiativeBetter science on murrelet habitat relationship to active forest management

87

Statewide Public Service Programs

[email protected] ReedVice Provost, University Outreach and EngagementDirector, OSU Extension Service

[email protected] ArpDean, College of Agricultural SciencesDirector, Oregon Agricultural Experiment Station

[email protected] ManessDean, College of ForestryDirector, Oregon Forest Research Laboratory

88

The public universities, on behalf of our students, alumni, and trustees, thank you for your support.

Let’s keep the momentum going…

Public University Support Fund 765.0$

Public University State Programs 41.9$

Statewide Public Services 118.5$

Sports Lottery 12.5$

2017-19 Request (in millions)

89